This group of depreciable assets includes all those expenses that have a taxable base of more than 300 euros and a useful life of more than one year, therefore:
VAT on the acquisition is deducted in the quarter in which it has taken place
IRPF will be written down at the rate set out on the tables released yearly by Hacienda
How to justify them?
These expenses must be justified in the same way as the rest:
An invoice including the necessary data
That are linked to your business activity
Example
In this example, the phone will be depreciated and the other hardware expense, the bumpers (the case) for the iPhone, which does not exceed 300 euros, will be deducted directly.
ℹ️ In case you intend to buy a product on Amazon that will be considered as an investment good based on its price (+ EUR 300.00 base amount), you must do it through the Amazon ‘My Business’ section to issue the correct invoice.
What do I need to know about fixed assets?
Fixed assets are those expenses on products that are going to have a useful life of more than one year in the economic activity. For example, if you buy a laptop, it is assumed (by the law) that you will be able to use it for your work for an average of 4 years.
Mind that to be a fixed asset they must:
Have a useful life of more than 1 year
Be 100% related to the economic activity
Be essential for its development
What does it mean that an asset must be "related" to economic activity?
When we say that an expense or a fixed asset must be "related" to the activity, we mean that it must be used solely and exclusively for the development of the activity. It is necessary to clarify the asset level of affection to correctly apply the tax regulations with respect to the deductions in function of each tax (personal income tax or VAT).
What does it mean that an asset is depreciable?
How can I deduct the cost of a fixed asset?
The difference between the expense of a current good and a fixed asset is that while with the first one, as it could be a pencil, the expense is recorded at the same moment in which we receive the invoice, in the case of the fixed assets this cost will be "depreciated".
Bear in mind that a fixed asset is an expense on a good that is going to be used for your economic activity for more than one year. For example, if the year in which we buy the laptop we deduct 100% of its cost, we are not correctly allocating the expense to each period of effective use, since according to the accounting rule we should divide the cost in the number of years that the good is going to be effectively used.
Let’s use an example to clarify this. If you buy a 1,000€ laptop on January 1st of the first year, the following breakdown will be included in the result of your economic activity during the following 4 years:
1st year: 250€
2nd year: 250€
3rd year: 250€
4th year: 250€
As you can see with this example, you are apportioning the expense within the number of years the good will be used.